Will you have enough to retire?

[JEDI]

http://money.cnn.com/calculator/retirement/retirement-need/?source=cnn_bin

according to cnn's calculator, I can retire in my 40s.

unfortunately, I think the calculator is a bit optimistic

 

[Ken g6]

unfortunately, I think the calculator is a bit optimistic

I agree.

We assume your current savings and future contributions are invested and will earn an average annual rate of return of 6%.

Anybody know where I can get that reliably?

 

[Train]

Says I will need 3 million, but will only have 1.5 million.

Damn, I need to save more.

 

[s0me0nesmind1]

I agree.
Anybody know where I can get that reliably?

Averaging the last 100+ years?

Either way, I will easily have enough to retire... Given, I'm an old person in a young person body. I worry far more about maxing out my 401k for the year than going on vacation.

 

[Jaepheth]

At my current salary and rate of saving, I'll actually get a raise at retirement.

 

[overst33r]

Better calculator

http://www.firecalc.com/

 

[nickbits]

It says I am 2M short.

I hate calculators that base it on your income. My income could be half what it is now my lifestyle wouldn't change so why does my current income matter for retirement?

 

[Imported]

It says I need 4.1mil.. what the hell.

 

[Doppel]

Apparently not, but these calculators are vapid.

I have 15% of income going to 401k for several years and if that isn't enough who cares. I won't overly struggle for some set figure 30 years down the line. I am behind where all these calculators say I should be and yet ahead of where 90% of people my age are, so there it is.

 

[vi edit]

It says I am 2M short.

I hate calculators that base it on your income. My income could be half what it is now my lifestyle wouldn't change so why does my current income matter for retirement?

Yup.

Household income right now is close to 200k. Says I'm grossly undersaving (15% + a small pension for my wife and I). If I drop it down to 100k I'm oversaving.

When it comes time to retire I'll have a house paid off, no $1500 a month daycare bill, no minivan payment, student loans, ect.

I think we'll be just fine.

 

[surfsatwerk]

No, that's why when I reach a certain age I will walk the earth and have adventures and help those in need.

 

[Atomic Playboy]

It makes some pretty silly assumptions about salary as well. I'm only 30; my earning potential is going to increase substantially over the next 15 years, and with at least another 20 years of work on top of that, my current rate of saving/spending is not going to resemble my retirement level of saving/spending in any relatable way. I could see how this might be useful if you're in your mid-50s and you're starting to seriously look at what your retirement plans will need, but for younger people, it's basically useless.

 

[Blackjack200]

They should replace these retirement calculators with "When will my student loans be paid off" calculators. Same concept

Put in your age, salary, loan principal, interest rate, and monthly contribution. Calculator tells you if your loans will be paid off by the time you start collecting social security.

 

[Scarpozzi]

I like that calculator because as you increase your yearly income, the "amount you'll need to retire" increases too. It's making an assumption that you're living beyond your means....

I luckily, live in a poorer part of the country and the cost of living is relatively low.

The most effective calculators let you figure out whether or not you'll be paying a mortgage...then you basically put together a budget based on your expectations...then it factors in 3-6% for inflation to come up with how much you'll need.

Then you get to figure out how long you'll need and then figure how long your retirement savings will last as an annuity.

Dave Ramsey has some good points about retirement...save what you can in your 401k first (if matched by employer), then start a Roth IRA as this will be a tax-free income stream to supplement your taxable income down the road.

 

[Genx87]

Heh their calculator doesnt scale high enough for what I am socking away(38.5% of income).

Even at 25% it claims I will have enough for retirement.

 

[bignateyk]

This calculator assumes you will need the same amount of income in retirement that you need today.

My wife and I make about $140K, but could live easily on $50K in retirement with the house paid off.

 

[Blackjack200]

Pfft, I save 120% of my income. Negative five and a half years till I can retire assuming 2.5% deflation and that the Social Secuirty Administration is dismantled, absorbed into the Department of Homeland Security, and its staff dispatched to "silence" anyone demanding payments.

 

[dank69]

All the gold and the guns in the world couldn't get me off

 

[s0me0nesmind1]

I like that calculator because as you increase your yearly income, the "amount you'll need to retire" increases too. It's making an assumption that you're living beyond your means....

I luckily, live in a poorer part of the country and the cost of living is relatively low.

The most effective calculators let you figure out whether or not you'll be paying a mortgage...then you basically put together a budget based on your expectations...then it factors in 3-6% for inflation to come up with how much you'll need.

Then you get to figure out how long you'll need and then figure how long your retirement savings will last as an annuity.

Dave Ramsey has some good points about retirement...save what you can in your 401k first (if matched by employer), then start a Roth IRA as this will be a tax-free income stream to supplement your taxable income down the road.

There is a lot of BS to the whole Roth IRA brigade over maxing out your 401k. The simple assumption is that you can pull out the Roth IRA and use it for emergency - which is stupid since you are throwing away additional money to the tax advantages of the 401k.

In addition, there are plenty of other useful gems to a 401k over an IRA... Such as your 401k being untouchable when it comes to bankrupcy. Yeah, you might want to know things like that.

 

[GagHalfrunt]

If I retire at 65 and die at 66, no problem.

 

[KeithTalent]

All the gold and the guns in the world couldn't get me off

Great song! :thumbsup:

No way I live past 60, so I will be fine.

KT

 

[spacejamz]

From Vanguard.com

https://retirementplans.vanguard.com/VGApp/pe/EducationNewsCenter#articleId=10369

Age Average balance
Under 25---->$3,865
25–34------->$21,524
35–44------->$54,054
45–54------->$103,269
55–64------->$154,421
65+--------->$176,696

 

[overst33r]

From Vanguard.com

https://retirementplans.vanguard.com/VGApp/pe/EducationNewsCenter#articleId=10369

Age Average balance
Under 25---->$3,865
25–34------->$21,524
35–44------->$54,054
45–54------->$103,269
55–64------->$154,421
65+--------->$176,696

Some more data points...

60% of workers ages 25 to 34 surveyed said they have less than $10,000 saved or invested

http://online.wsj.com/news/articles/SB10001424127887324874204578441602225249728

 

[LTC8K6]

Not if you have a Detroit pension...

Buckfire, a Detroit native and investment banker with restructuring experience, later told the court the city plans to pay unsecured creditors, including the city’s pensioners, 16 cents on the dollar.

http://www.thegatewaypundit.com/201...s-to-cut-pensions-by-84-or-16¢-on-the-dollar/

 

[bignateyk]

From Vanguard.com

https://retirementplans.vanguard.com/VGApp/pe/EducationNewsCenter#articleId=10369

Age Average balance
Under 25---->$3,865
25–34------->$21,524
35–44------->$54,054
45–54------->$103,269
55–64------->$154,421
65+--------->$176,696

That's sad. I'm only 29 and already have more than most people getting ready to retire.